Global Digital Solutions Inc (GDSI)

[Coreton]

Specific Performance means they are asking for the contract to be enforced.

This means the transfer of Rontan to GDSI under the terms of the contract $50m cash, $50m stock less whatever “incidental” damages would be awarded for the 5 years hence. (Short version from DE 193 and it’s subsequent memorandums)

Rontan had revenue of $128m for 2014-15 so damages for at least one of the 5 years can be calculated from those figures. We would need the information, Rontan has refused to provide under discovery, for the years 2016- present.

I have not seen in any filings where BSF has stated any figures for this purpose as they would need the financials for the remaining years in question.

We can however speculate where that figure might be by using the information that is available.

If we used a conservative figure and estimate that there were 20% net profit from operations we could extrapolate that each year would be about $25m (based on the $128m for 2014-15) x5 which would fully offset all the monetary obligations of GDSI in the execution of its obligations under the SPA, plus an additional $25m-$50m that would be owed GDSI.

Hope this helps a little.

GL